Dow...14,000...next?

[MichaelB]

Quote:

Originally Posted by audreyh1 Oh well, it was nice while it lasted!!! Actually, Mondays have been downers lately.

Mondays were always downers, but that changed when I quit working.

[timeasterday]

Quote:

Originally Posted by Texas Proud All that QE money is buying the US gvmt debt... not going into the stock market...

The Fed is buying billions in Mortgage-Backed Securities. As of last year banks were one of the largest holders of MBS's. JP Morgan & Wells Fargo are the top dogs in that market and they are definitely profiting from this. They certainly won't sit on that money - it has to go somewhere. Additionally, the yield on those MBS's goes down as the Fed buys more, but mortgage rates haven't really dropped significantly. That spread in yield is at a record level and means more profit for banks.

[audreyh1]

Quote:

Originally Posted by MichaelB Mondays were always downers, but that changed when I quit working.

Good for you for not watching the markets!

[MichaelB]

Quote:

Originally Posted by audreyh1 Good for you for not watching the markets!

Oh, I watch. But, in one way, for me the markets are like DW - I never can quite figure them out, even though I feel I should be able to, and every time I think I've got it, something happens to show me just how wrong I can be. So, in both cases, I've stopped trying to figure them out and now just go along with them. In both cases it has been rewarding so far and I'm optimistic the future is rosy.

[Texas Proud]

Quote:

Originally Posted by timeasterday The Fed is buying billions in Mortgage-Backed Securities. As of last year banks were one of the largest holders of MBS's. JP Morgan & Wells Fargo are the top dogs in that market and they are definitely profiting from this. They certainly won't sit on that money - it has to go somewhere. Additionally, the yield on those MBS's goes down as the Fed buys more, but mortgage rates haven't really dropped significantly. That spread in yield is at a record level and means more profit for banks.

I don't disagree... and I don't think my post stated otherwise...

I was just trying to point out that the QE money is only going toward buying bonds... the ripple effect this has is predictable, but QE money is not going into the markets or banks etc., it is other money...

So, QE is invested in 'safe' investments pushing down their price which results in others taking more risk... kind of a neat way to push off that risk...

[Severinooh]

Should a soon to be ER buy here or wait till a dip occurs?

[REWahoo]

Quote:

Originally Posted by Severinooh Should a soon to be ER buy here or wait till a dip occurs?

Others may disagree, but my opinion is a soon to be ER should have an asset allocation strategy in place and be asking is it time to rebalance, not is it time to buy.

But to answer your question, no one knows. That's why market timing hasn't worked very well for most investors.

[pb4uski]

Quote:

Originally Posted by okapi Watching CNBC will make you broke and stupid.

Not true. It will make you stupid but it will only make you broke if you act on their "advice".

[donheff]

Just read an article that pointed out that last month had the largest influx to equity funds in history. maybe a sign that all the worry warts are getting back into the market. If so, we should see a hefty increase this year followed by a temporary crash wiping out this year's gain plus some. Then the worry warts can bail again.

Or something entirely different will happen.

[Severinooh]

OK, let's try this again, have well over seven figures in retirement accounts and have missed the latest rally. Just thought I may get some advice that I can understand.

[imoldernu]

On Monday, the President signed a bill that authorized $450 Billion of borrowing, to avoid exceeding the $16.4 Trillion Debt limit, that would trigger
default. The $450B only pays the interest on the debt, so this just kicks the can further down the road, and doesn't resolve the problems.
At some point... this year, the national debt will exceed the GDP.

[MichaelB]

Quote:

Originally Posted by Severinooh OK, let's try this again, have well over seven figures in retirement accounts and have missed the latest rally. Just thought I may get some advice that I can understand.

Don't time the market.

From yesterday's NYT, just the thing you need. The Question You Should Be Asking About the Stock Market - NYTimes.com

Quote:

With the stock market up more than 100 percent from those scary days in early 2009 and up 16 percent in 2012 alone, we’re now hearing plenty about how small investors are getting back into the market. Andrew Wilkinson, the chief economic strategist at Miller Tabak Associates, referred to it as a “a real sea change in investor outlook.” It seems we’re in danger of repeating the same old cycle of swearing off stocks forever during scary markets, missing a huge rally and then deciding it’s time to buy when stocks are high again. On the flip side, I’ve had a number of conversations with Main Street investors who are asking if now is the time to sell because the Dow Jones Industrial Average is hovering near 14,000 and the S&P 500 stock index is around 1,500 again.

[heeyy_joe]

Quote:

Originally Posted by Severinooh OK, let's try this again, have well over seven figures in retirement accounts and have missed the latest rally. Just thought I may get some advice that I can understand.

If you are not in the market now, enter slowly by cost averaging into your preplanned target asset allocation over the next twelve months...

Bulls make money. Bears make money.

And pigs get slaughtered.